Sec. 6. Mandatory reporting with respect to certain health-related ownership information
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Part A of title XI of the Social Security Act ( 42 U.S.C. 1301 et seq. ) is amended by adding at the end the following new section: Not later than January 1, 2027 (or in the case of a specified entity formed after January 1, 2027, within 60 days of becoming a specified entity), and each year thereafter, each specified entity (as defined in subsection (e)(8)) shall submit to the Secretary, in a form and manner specified by the Secretary, a report containing the following information, subject to paragraph (3)(B):
Data on mergers, acquisitions, changes in ownership, changes in control, transactions to form new affiliations, changes in partnerships, joint ventures, and/or management services agreements, to which such specified entity is a party for the previous 1-year period, including— the primary reason the reporting entity completed the acquisition; and a description of how the acquirer obtained control of the acquiree, and the percentage of ownership acquired (i.e., voting equity interests).
As applicable, the name, address, tax or health plan identification numbers (including, without limitation, the tax identification number, National Association of Insurance Commissioners identification number, State insurance identification number, Medicare provider number, and the standard unique health identifier (as described in section 1173(b))) of all health care providers within the specified entity that furnish items or services. Business structure of any controlling entity, including the business type and the tax identification number of such entity, other affiliates under common control, subsidiaries, and management services entities of such specified entity, as of the date of the submission of this report.
Information regarding— the debt-to-earnings ratio of the specified entity; the amount of debt incurred— by each hospital or separate entity within the health system; and by the entire specified entity; real estate leases and purchases for property used, or intended to be used, to furnish or otherwise support the provision of health care services, including expenditures on rents and maintenance, property taxes paid, and the name of the company leased from; details of other companies' revenue sharing arrangement; fees charged or dividends paid to investors; in the case of a non-profit hospital, a subsidiary of a non-profit hospital, or a 501(c)(3) entity that shares common ownership with a non-profit hospital, capital gains investments (disaggregated by the type of investment) and any taxes paid on such gains from such investments; and information with respect to any controlling entity of such specified entity.
The value of quality payments received for performance under any value-based or other performance-based program such as the shared savings program under section 1899. Any other information with respect to ownership or control of a specified entity, as determined by the Secretary. Any changes to the health care providers within the specified entity that furnish items or services during the previous 1-year period, identified by the National Provider identifier described in section 1173(b).
The domicile and business registration information for any controlling entity or subsidiary of such controlling entity that is domiciled outside of the United States. If a specified entity is owned or controlled by an entity described in subparagraph
(G)of subsection (f)(8), only the entity described in such subparagraph
(G)shall be required to submit reports under this subsection with respect to such entity and any specified entity owned or controlled by the entity. Not later than January 1, 2028, and annually thereafter, subject to subparagraph (B), the Secretary shall post on a publicly available website of the Department of Health and Human Services the information reported under this subsection with respect to the previous 1-year period for which the information was collected. In making information reported under this subsection publicly available under subparagraph (A), the Secretary shall do so in a manner that does not disclose the social security number of any individual provider of services or supplier. The Secretary shall conduct an annual audit consisting of a random sample of specified entities to verify compliance with the requirements of this section and the accuracy of information submitted pursuant to this section. If a specified entity fails to provide a complete report under subsection (a), or submits a report containing false information, such entity shall be subject to a civil monetary penalty of not more than $5,000,000 for each such report not provided or containing false information. Such penalty shall be imposed and collected in the same manner as civil money penalties under subsection
(a)of section 1128A are imposed and collected under that section. Chapter 35 of title 44, United States Code, shall not apply to collections of information made under this section. In this section: The term control means the direct or indirect power through ownership, contractual agreement, or otherwise— to vote more than 5 percent of any class of voting securities of a specified entity; or to direct the actions of the specified entity. The term controlling entity means, with respect to any specified entity, a parent company or other entity that owns or controls the specified entity through ownership, contractual agreement, or otherwise. Such term includes, with respect to a specified entity, a real estate investment trust (as defined in section 856 of the Internal Revenue Code of 1986) that owns property where the specified entity furnishes health care items or services. The term health plan has the meaning given such term in section 1128C(c). The term health system means a group of health care organizations (such as physician practices, hospitals, skilled nursing facilities) that are jointly owned or managed. The term hospital has the meaning given such term in section 1861(e). The term independent freestanding emergency department has the meaning given such term in section 2799A–1(a)(3)(D) of the Public Health Service Act. The term private fund means a corporation that— would be considered an investment company under section 3 of the Investment Company Act of 1940 ( 15 U.S.C. 80a–3 ) but for the application of paragraph
(1)or
(7)of subsection
(c)of such section 3; is not a venture capital fund, as defined in section 275.203(l)–1 of title 17, Code of Federal Regulations, as in effect on the date of enactment of this section; and is not an institution selected under section 107 of the Community Development Banking and Financial Institutions Act of 1994 (12 2 U.S.C. 4706 ). The term specified entity means— a hospital or health system; a physician-owned physician practice (other than a practice described in subparagraph (C)) that is enrolled in the Medicare program under title XVIII under section 1866(j); a physician practice owned, controlled, under common control, or under management agreement by a hospital, health system, a health plan, a private fund, a venture capital fund, a public or private corporation, or any subsidiaries or entities under common control thereof; an ambulatory surgical center meeting the standards specified under section 1832(a)(2)(F)(i); an independent freestanding emergency department; a behavioral health treatment facility, a hospice program (as defined in section 1861(dd)(2)), a home health agency, a provider of services or renal dialysis facility that furnishes renal dialysis services, or an assisted living facility; any other entity specified by the Secretary that furnishes health care items and services; and any entity that owns or controls 1 or more specified entities. The term venture capital fund has the meaning given such term in section 275.203(l)–1 of title 17, Code of Federal Regulations. .
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U.S. Code
2 references not yet in our index
- 15 USC 80a–3
- 2 USC 4706
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Sec. 6
Mandatory reporting with respect to certain health-related ownership information
Cite15 USC 80a–3
Cite2 USC 4706
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